To facilitate access to capital for underserved Panamanian MSMEs, MicroVest has invested in Banco Delta (BanDelta), the largest microfinance institution in the country. The $5 million investment will help BanDelta expand access to financial services for MSMEs and reignite growth for businesses impacted by COVID-19.
Founded in 2006, BanDelta provides specialized financial services to MSMEs, many of whom are accessing formal financial services for the first time. MicroVest’s investment will further support the liquidity needs of these businesses in what has been a difficult post-COVID-19 environment in the country.
Today, an estimated 200,000 MSMEs represent 96% of all enterprises in Panama and account for up to 49% of formal employment (IADB). However, access to financing remains a challenge and is often cited as a key constraint to the growth of these businesses.
BanDelta currently finances more than 23,600 Panamanian MSMEs. The organization has a credit portfolio of approximately $222 million and deposits totaling $215 million.
This is MicroVest’s 7th investment in the company.